analysis and assessment of fmcg market of india

7/31/2019 Analysis and Assessment of Fmcg Market of India

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A RESEARCH REPORT ON

ANALYSIS & ASSESSMENT OF FMCG

MARKET OF INDIA
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Table of Contents

INTRODUCTION OFREPORT..

RESEARCH PROCESS IN FLOWCHART

DEFINE RESEARCH PROBLEM.

FORMULATE HYPOTHESIS.

DESIGN RESEARCH..

COLLECTION OF DATA

ANALYSE DATA

INTERPRET AND REPORT ..

INTRODUCTION OF FMCG MARKET.

" WHAT IS FMCG? "..

SCOPE OF THE FMCG SECTOR BUDGET 2007-2008 FOR FMCG SECTOR .

WHY INDIAN MARKET.

CONSUMPTION PIE CHART

INDIA COMPETITIVENESS AND COMPARISON WITH THEWORLD.

TOP TEN PLAYERS IN FMCG SECTOR..

MARKET OPPORTUNITIES FOR INVESTMENT

ANALYSIS OF FMCG MARKET.

SEGMENT WISE ANALYSIS.. RECOMMENDATIONS FOR FMG MARKET


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DEFINE RESEARCH PROBLEM

Research encompasses activities that increase the sum of human knowledge.

Research and Experimental Development comprises:

Creative work undertaken on a systematic basis in order to increase the stock ofknowledge, including knowledge of humanity, culture and society, and the use ofthis stock of knowledge to devise new applications.

Any activity classified as research and experimental development is characterized

by originality; it should have investigation as a primary objective and should havethe potential to produce results that are sufficiently general for humanity's stock ofknowledge (theoretical and/or practical) to be recognizably increased. Most highereducation research work would qualify as research and experimental development.

Research carries with it a professional and ethical responsibility to disseminate and applythe results of research activity and to conduct research in a manner consistent with the

. An essential characteristic is that it leads topublicly verifiable outcomes which are open to peer appraisal.

The complementary activity of scholarship refers to possession of an extensive and

profound knowledge of an academic discipline and the analysis and interpretation ofexisting knowledge aimed at improving, through teaching or by other means ofcommunication, the depth of human understanding.

Types of Research Activity

Research includes pure basic research, strategic basic research, applied research andexperimental development .

Pure basic research is experimental and theoretical work undertaken to acquire newknowledge without looking for long-term benefits other than the advancement of

knowledge.

Strategic basic research is experimental and theoretical work undertaken to acquire newknowledge directed into specified broad areas in the expectation of useful discoveries. Itprovides the broad base of knowledge necessary for the solution of recognised practicalproblems.
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Applied research is original work undertaken primarily to acquire new knowledge with aspecific application in view. It is undertaken either to determine possible uses for thefindings of basic research or to determine new ways of achieving some specific andpredetermined objectives.

Experimental development is systematic work, using existing knowledge gained fromresearch or practical experience, that is directed to producing new materials, products ordevices, to installing new processes, systems and services, or to improving substantiallythose already produced or installed.

The purpose of the research is to discover answers to questions through the application ofscientific procedures. The main aim of research is to find out the truth which is hidden andwhich has not been discovered as yet.

Aim: Analysis and Assessment of Fast Moving Consumer Goods,which refer to things that we buy from local supermarkets on daily

basis, the things that have high turnover and are relatively cheaper.


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FORMULATE HYPOTHESIS

A hypothesis is a specific statement of prediction. It is simple; hypothesis is a suggestedsolution or explanation to a problem or a phenomenon. So you will just write what youthink is the solution to that problem. It describes in concrete (rather than theoretical) termswhat you expect will happen in your study. Not all studies have hypotheses. Sometimes astudy is designed to be exploratory. There is no formal hypothesis, and perhaps the purposeof the study is to explore some area more thoroughly in order to develop some specifichypothesis or prediction that can be tested in future research. A single study may have oneor many hypotheses.

If your prediction specifies a direction, and the null therefore is the no difference prediction

and the prediction of the opposite direction, we call this a one-tailed hypothesis. Whenyour prediction does notspecify a direction, we say you have a two-tailed hypothesis

The logic of hypothesis testing is based on these two basic principles:

The formulation of two mutually exclusive hypothesis statements that, together,exhaust all possible outcomes

The testing of these so that one is necessarily accepted and the other rejected


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DESIGN RESEARCH

Research design is the controlling plan for a marketing research study in which the

methods and procedures for collecting and analysing the information to be collected isspecified. Research design can be thought of as thestructure of research -- it is the "glue"that holds all of the elements in a research project together.

Types of Research Designs

Randomized experiment

Non-experimental design

Quasi-experimental design

We can classify designs into a simple threefold classification by asking some keyquestions. First, does the design use random assignment to groups? [Don't forget thatrandom assignment is not the same thing as random of a sample from apopulation!] If random assignment is used, we call the design a randomized experiment ortrue experiment. If random assignment is not used, then we have to ask a second question:Does the design use either multiple groups or multiple waves of measurement? If theanswer is yes, we would label it a quasi-experimental design. If no, we would call it anon-experimental design. A randomized experiment generally is the strongest of the threedesigns when your interest is in establishing a cause-effect relationship. A non-experimentis generally the weakest in this respect.
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COLLECTION OF DATA

Methods of primary data collection

Semi-structured interview / unstructured interview Focus groups

Diaries / written accounts

Participant observation / non-participant observation

Media sources

Through schedule

Warranty cards

Distributors or Store audits

Pantry audits

Consumers panels

Use of mechanical device

Projective technique

Methods of secondary data collection

Various publications of the central, state local governments

Various publication of foreign governments or international bodies andtheir subsidiary organisations

Reports and publication of various associationsReports prepared by research scholars

Public records and statistics, historical documents

Technical and trade journals

Newspapers

Magazines

Books


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ANALYSE DATA

This will be much more substantial, and much more discursive, than the results section of atypical experimental report. Your purpose here is twofold - you need to give an account ofyour data (to communicate a sense of what it is like) and to offer an interpretation of (tomake a case for what it means). This should be based upon your codes and/or themes, butthere is plenty of scope for you to be imaginative in both the way that you choose tostructure your analysis section, and in the way that you choose to lay out your evidence.Many of your decisions will depend on your chosen approach.

By the time you get to the analysis of your data, most of the really difficult work has beendone. It's much more difficult to: define the research problem; develop and implement asampling plan; conceptualize, operationalize and test your measures; and develop a design

structure. If you have done this work well, the analysis of the data is usually a fairlystraightforward affair.

In most social research the data analysis involves three major steps, done in roughly thisorder:

Cleaning and organizing the data for analysis (Data Preparation) Describing the data (Descriptive Statistics) Testing Hypotheses and Models (Inferential Statistics)

involves checking or logging the data in; checking the data for accuracy;

entering the data into the computer; transforming the data; and developing anddocumenting a database structure that integrates the various measures.

are used to describe the basic features of the data in a study. Theyprovide simple summaries about the sample and the measures. Together with simplegraphics analysis, they form the basis of virtually every quantitative analysis of data. Withdescriptive statistics you are simply describing what is, what the data shows.

investigate questions, models and hypotheses. In many cases, theconclusions from inferential statistics extend beyond the immediate data alone. Forinstance, we use inferential statistics to try to infer from the sample data what the

population thinks. Or, we use inferential statistics to make judgments of the probability thatan observed difference between groups is a dependable one or one that might havehappened by chance in this study. Thus, we use inferential statistics to make inferencesfrom our data to more general conditions; we use descriptive statistics simply to describewhat's going on in our data.
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INTERPRET AND REPORT

The best advice is to consider your particular writing context carefully and to let it guide

your writing. If youre writing in a workplace context, find out if your organization hasdocument or style guidelines and look at previous reports put out by the organization.Whenever you write, you should keep your purpose and audience clearly in focus. Begin byconsidering

what you want to accomplish with your report: what are your primary andsecondary objectives?

who will be reading your report and for what purposes: What is their background?What questions might they have? What might they expect in terms of content andformat?


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INTRODUCTION OF FMCGMARKET


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INTRODUCTION

The Indian FMCG sector is the fourth largest

sector in the economy with a total market size inexcess of US$ 13.1 billion.It has a strong MNCpresence and is characterised by awellestablished distribution network, intensecompetition between the organised andunorganised segments and low operational cost.Availability of key raw materials, cheaper labourcosts and presence across the entire value chaingives India a competitive advantage.

The FMCG market is set to treble from US$ 11.6

billion in 2003 to US$ 33.4 billion in 2015.Penetration level as well as per capitaconsumption in most product categories likejams, toothpaste, skin care, hair wash etc in Indiais low indicating the untapped market potential.Burgeoning Indian population, particularly themiddle class and the rural segments, presents anopportunity to makers of branded products toconvert consumers to branded products.

Growth is also likely to come from consumer

'upgrading' in the matured product categories.With 200 million people expected to shift toprocessed and packaged food by 2010, Indianeeds around US$ 28 billion of investment in thefood-processing industry.

Automatic investment approval (includingforeign technology agreements within specifiednorms), up to 100 per cent foreign equity or 100per cent for NRI and Overseas Corporate Bodies(OCBs) investment, is allowed for most of thefood processing sector.


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" WHAT IS FMCG? "

FMCGs or fast moving consumer goods are the products which are frequently purchasedby consumers including toiletries, soaps, cosmetics, teeth cleaning products, shavingproducts, detergents, other non-durables such as glassware, bulbs, batteries, paper

products ,plastic goods etc. It used to be called the grocery industry, now its just calledFMCG. FMCG is an ugly acronym forFast Moving Consumer Goods, which translatedinto English means 'things you buy on a regular basis at places like your local supermarket.

Scope of the FMCG Sector

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sectorin the economy. A well-established distribution network, intense competition between theorganized and unorganized segments characterize the sector. FMCG Sector is expected togrow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-yearperiod. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in

2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, femalehygiene, and the chocolates and confectionery categories are estimated to be the fastestgrowing segments, says an HSBC report. Though the sector witnessed a slower growth in2002-2004, it has been able to make a fine recovery since then.For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the lastquarter. An estimated double-digit growth over the next few years shows that the goodtimes are likely to continue.

Recent Developments in Fast Moving Consumer Goods (FMCG) Sector

FMCG sector is no doubt registering an up trend in growth. According to CNBC, FMCGsector growth story will continue because of the positive budget. Nevertheless, there are

some barriers to the growth of the sector. Indirect taxes constitute no less than 35% of thetotal cost of consumer products - the highest in Asia. Last year, Finance Minister proposedto introduce an integrated Goods and Service Tax by April 2010.This is an exceptionallygood move because the growth of consumption, production, and employment is directlyproportionate to reduction in indirect taxes.

Budget 2007-2008 for FMCG Sector


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Reduction of duty on edible oil will have a positive impact on Marico.

Full exemption of excise duty on biscuits priced at 50 rupees or less per kg is

positive for ITC, Britannia, and Parle.

Reduction of custom duty on food processing machinery and their parts from 7.5%

to 5%.

Reduction of excise duty on food mixes from 16% or 8% to nil is positive for ITC.

Development of rural infrastructure is in focus, which is beneficial for FMCG

companies because it is a big market for FMCGs. Better infrastructure will

improve the supply chain.

Exemption of free samples and displays from the purview of FBT will be

beneficial for FMCG companies because they spend huge amount of money on

advertising and brand building. HLL, Dabur, ITC, and Marico will be amongst the

most benefited companies.

The Indian FMCG sector is the fourth largestsector in the economy with a total marketsize in excess of US$ 13.1 billion. It has a


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strong MNC presence and is characterized by a well established distribution network,intense competition between the organized and unorganized segments and low operationalcost. Availability of key raw materials, cheaper labour costs and presence across the entirevalue chain gives India a competitive advantage. The FMCG market is set to treble fromUS$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita

consumption in most product categories like jams, toothpaste, skin care, hair wash etc inIndia is low indicating the untapped market potential. Burgeoning Indian population,particularly the middle class and the rural segments, presents an opportunity to makers ofbranded products to convert consumers to branded products. Growth is also likely to comefrom consumer 'upgrading' in the matured product categories. With 200 million peopleexpected to shift to processed and packaged food by 2010, India needs around US$ 28billion of investment in the food-processing industry.

WHY INDIAN MARKET

Large Domestic Market

India is one of the largest emerging markets, with a population of over one billion. India isone of the largest economies in the world in terms of purchasing power and has a strongmiddle class base of 300 million.


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Around 70 per cent of the total households in India (188 million) resides in the rural areas.The total numbers of rural households are expected to rise from 135 million in 2001-02 to153 million in 2009-10. This presents the largest potential market in the world. The annualsize of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. Withgrowing incomes at both the rural and the urban level, the market potential is expected toexpand further.

India - A Large Consumer Goods Spender

An average Indian spends around 40 per cent of his income on grocery and 8 per cent onpersonal care products. The large share of fast moving consumer goods (FMCG) in totalindividual spending along with the large population base is another factor that makes India

one of the largest FMCG markets.

CONSUMPTION PIE CHART :-


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Even on an international scale, total consumer expenditure on food in India at US$ 120billion is amongst the largest in the emerging markets, next only to China.


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Change in the Indian consumer profile


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Rapid urbanisation, increased literacy and rising per capita income, have all caused rapidgrowth and change in demand patterns, leading to an explosion of new opportunities.

Around 45 per cent of the population in India is below 20 years of age and the youngpopulation is set to rise further. Aspiration levels in this age group have been fuelled bygreater media exposure, unleashing a latent demand with more money and a new mindset.

Demand-supply gap

Currently, only a small percentage of the raw materials in India are processed into valueadded products even as the demand for processed and convenience food is on the rise. Thisdemand supply gap indicates an untapped opportunity in areas such as packaged form,convenience food and drinks, milk products etc. In the personal care segment, the lowpenetration rate in both the rural and urban areas indicates a market potential.

INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD

MARKETS


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Materials Availability

India has a diverse agro-climatic condition due to which there exists a wide-ranging andlarge raw material base suitable for food processing industries. India is the largest producer

of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producerof rice, wheat and fruits & vegetables. India also has an ample supply of caustic soda andsoda ash, the raw materials in the production of soaps and detergents India produced 1.6million tonnes of caustic soda in 2003-04. Tata Chemicals, one of the largest producers ofsynthetic soda ash in the world is located in India. The availability of these raw materialsgives India the locational advantage.

Apart from the advantage in termsof ample raw material availability,

existence of low-cost labour forcealso works in favour of India.Labour cost in India is amongst thelowest in Asian countries. Easy rawmaterial availability and low labourcosts have resulted in a lower costof production. Many multi-nationals have set up large low costproduction bases in India tooutsource for domestic as well asexport markets.

Leveraging the cost advantage

Global major, Unilever, sources a major portion of its product requirements from its Indiansubsidiary, HLL. In 2003-04, Unilever outsourced around US$ 218 million of home andpersonal care along with food products to leverage on the cost arbitrage opportunities withthe West. To take another case, Procter & Gamble (P&G) outsourced the manufacture ofVicks Vaporub to contract manufacturers in Hyderabad, India. This enables P&G tocontinue exporting Vicks Vaporub to Australia, Japan and other Asian countries, but atmore competitive rates, whilst maintaining its high quality and costefficiency.

Presence across value chain


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Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestl India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Marico Industries10.Procter & Gamble Hygiene and Health

Care

Critical Operating Rules In Indian FMCG Sector:-
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Heavy launch costs on new products on launch advertisements,free samples and product promotions.

Majority of the product classes require very low investment infixed assets

Existence of contract manufacturing Marketing assumes a significant place in the brand building

process

Extensive distribution networks and logistics are key to achievinga high level of penetration in both the urban and rural markets

Factors like low entry barriers in terms of low capital investment,fiscal incentives from government and low brand awareness inrural areas have led to the mushrooming ofthe unorganised sector

Providing good price points is the key tosuccess

Penetration And Per Capita

Consumption:-

Penetration level in most productcategories like jams, toothpaste,


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skin care, hair wash etc in India is low. The contrast is particularly striking between therural and urban segments - the average consumption by rural households is much lowerthan their urban counterparts. Low penetration indicates the existence of unsaturatedmarkets, which are likely to expand as the income levels rise. This provides an excellentopportunity for the industry players in the form of a vastly untapped market. Moreover, per

capita consumption in most of the FMCG categories (including the high penetrationcategories) in India is low as compared to both the developed markets and other emergingeconomies. A rise in per capita consumption, with improvement in incomes andaffordability and change in tastes and preferences, is further expected to boost FMCGdemand. Growth is also likely to come from consumer "upgrading", especially in thematured product categories.

Detergent per capita Consumption (in Kg) Tea per capita Consumption (in Kg)

Tooth paste per capita Consumption (in Kg) Personal wash per capita Consumption (in Kg)


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Tea per capita Consumption (in Kg) Skin care products per capita Consumption (in Rs)

Ice Cream per capita Consumption (in Lit.) Shampoo per capita Consumption (in Kg)

MARKET OPPORTUNITIES FOR INVESTMENT:-

According to estimates based onChina's current per capitaconsumption, the Indian FMCGmarket is set to treble from US$11.6 billion in 2003 to US$ 33.4billion in 2015. The dominance ofIndian markets by unbrandedproducts, change in eating habits

and the increased affordability ofthe growing Indian populationpresents an opportunity to makersof branded products, who canconvert consumers to brandedproducts.


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A recent survey of industries in the Fast Moving Consumer Goods (FMCG) sectorconducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) hasshown positive growth trends and signs of recovery in various segments .The survey notes,some sectors showing negative growth in terms of value have recorded positive growth involumes.

The survey attributes the reflected buoyancy to the following factors:

1) Several cost saving measures

2) Various tax benefits

3) Rising demand

4) Growing GDP

5) Good monsoon

6) Strong economic fundamentals

7) The expected policy packages to be announced by the new government for farmers forraising rural income is bound to stimulate growth further

GROWTH PROSPECTS

With the presence of 12.2% of the world population in the villages of India, the Indian ruralFMCG market is something no one can overlook. Increased focus on farm sector will boostrural incomes, hence providing better growth prospects to the FMCG companies. Betterinfrastructure facilities will improve their supply chain.FMCG sector is also likely to benefit from growing demand in the market. Because of thelow per capita consumption for almost all the products in the country, FMCG companieshave immense possibilities for growth. And if the companies are able to change the mindsetof the consumers, i.e. if they are able to take the consumers to branded products and offernew generation products, they would be able to generate higher growth in the near future.

It is expected that the rural income will rise in 2007, boosting purchasing power in thecountryside. However, the demand in urban areas would be the key growth driver over thelong term. Also, increase in the urban population, along with increase in income levels andthe availability of new categories, would help the urban areas maintain their position in


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terms of consumption. At present, urban India accounts for 66% of total FMCGconsumption, with rural India accounting for the remaining 34%.

However, rural India accounts for more than 40% consumption in major FMCG categoriessuch as personal care, fabric care, and hot beverages. In urban areas, home and personal

care category, including skin care, household care and feminine hygiene, will keep growingat relatively attractive rates. Within the foods segment, it is estimated that processed foods,bakery, and dairy are long-term growth categories in both rural and urban areas.

The survey confirms higher growth rates for some FMCGs belonging to personal careproducts, fabric & personal wash products, oral care products and Hair care products. Thesectors which have recorded double digit growth in terms of value are shaving cream (20per cent), deodorant (40 per cent), branded coconut oil (10 per cent),anti dandruffshampoos (15 %), hair dyes (25 per cent), cleaners & repellents (20 per cent). Some sectorswhich have recorded negative growth are personal health care (-3 %) Laundry soaps (-5percent), dish wash (-3 %), toilet soap (-4.5%) Tooth paste (-5 percent),toothpowder(-

8percent).


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ANALYSIS OF FMCG

MARKET

The research report offers insights into the dynamics of growth in a competitive

market environment. The salient features of development the survey has identified

include:

The improvement has been much more pronounced in volume terms than in valueterms for most of the products.

Post liberalization period provided the consumers the opportunity to make choices

amongst the products of domestic companies and imported products. One of the greatest achievements made by the FMCG industry has been the sachet

bugs which have helped the companies to introduce products in smaller packagesizes, at lower price points and reach new users and to expand market share forvalue added products in urban India.

Several cost saving measures, various tax benefits, rising demand, good monsoonhave helped the industry to achieve positive growth.


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Most of the multinational companies have started sourcing their products fromIndia. HLL has become the production center in respect of personal consumerproducts like oral care, skin care products, soap, detergents globally for Unilever.

There has been a trend from shift to own manufacturing from third partymanufacturing or procuring goods from third party small-scale manufacturers.

Though the companies are going global, they are focusing on the overseas marketslike Bangladesh, Pakistan, Nepal, Middle East and CiS countries because of thelifestyles, consumption habits similar to India. Godrej Consumer, Marico, Dabur,Vicco laboratories are among the companies.

The offshoots and mushrooming of regional companies which are posing a threat tobigger FMCG companies like HLL. The rise of Jyothi Laboratories, throwingchallenge to Reckitt Benckiser is a case in point.

FMCG market remains highly fragmented with almost half of the marketrepresenting unbranded, unpackaged home made products. This presents atremendous opportunity for makers of branded products who can convert consumersto branded products.

There is competition between the organized and the unorganized sectors in theFMCG sector. Marketing and distribution are very important in FMCG companies. New products

require a large investment in product development, market research, and awarenesscampaign, developing franchise for a new brand advertisements, free samples andproduct promotions.

All these developments have made the consumers strong, who are in a position nowto choose a variety of products, from a number of companies, at different pricepoints. Bargaining power of customers is high.

Key factors to success are distribution (in rural markets) and advertising (in urbanmarkets). Critical factors for success are the ability to build, develop and maintain arobust distribution network.

The fact that a lot of women have started looking for specialized products hasdriven growth.

SEGMENT WWISE ANALYSIS

Fabric wash market:

The demand for detergents has been growing atan annual growth rate of 10-11 per cent duringthe past five years, while the laundry bar market

has witnessed a negative growth. This yeargrowth rate is low at 2 per cent for detergentcakes and 2.5 per cent for washing powder. In theurban markets, people prefer to use washingpowder and detergents, instead of bars, onaccount of convenience of usage, increasedpurchasing power, aggressive advertising andincreased penetration of washing machines.


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Personal wash market:

While the growth rate for the overall personalwash market is only 1 per cent compared toaverage growth rate of 5 per cent, premium and

middle-end soaps are growing at a rate of 10 percent. The leading players in this market are HLL(Lux, Lifebuoy, Breeze, Rexona), Nirma (Nima),Godrej Soaps (Cinthol, FairGlow, Shikakai,Nikhar), and Reckitt & Colman (Dettol).

Oral care market:

The oral care market valued at Rs. 26 bn has

suffered a negative growth of 5 per cent in 2003-04. Toothpaste and toothpowder have sufferednegative growth of 5 % and 8 % respectively. Themarket for tooth brushes valued at Rs 4 bn hasgrown at 5 per cent.

Skin care and cosmetics market:

Skin care and cosmetics valued at Rs 12 bn andincludes cold creams, lotions, moisturizers,cleansers, talcum powders, deodorants, lipsticks, nailenamels, etc. The shaving cream market valued at Rs

1.1 bn, has grown by 20%. The market is dominatedby C-P, Gillette India and Godrej Soaps. The skincare market has seen the entry of a number ofinternational brands, like Oriflame, Avon andAviance. The herbal-based products are also quitepopular inthis market.


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Hair care market:

Hair care includes a variety of branded and

unbranded products like hair oils, shampoos, creams,conditioners hair dyes, etc. The Coconut Oil Marketaccount for 72 per cent of the hair oil market. In thebranded coconut hair oil market, Marico (withParachute) and Dabur are the leading players. HLLis also extending its Sunsilk brand to hair oils. Themarket for branded coconut oil valued atapproximately Rs. 8 bn has grown by 10 %. Themarket has been witnessing a shift in usage patternsin both urban and rural markets.

Feminine hygiene market:

The feminine hygiene market is estimated to beworth Rs. 2 bn market. The market has reversed froma negative growth in previous years and flat growthin the last year has recorded a growth of 2 per cent.This hasgot a boost from the withdrawal of excise duties.

Deodorants market:

The deodorant market is estimated to be worth Rs0.8 bn and has been growing at 40 per centannually. The organized segment is dominated byHLL with its Rexona, Axe, Denim and Impulsebrands in different categories targeting differentsegments of the market.

Dish wash market:


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The total size of the dish wash market, estimated at Rs 4.4 bn has recorded a negativegrowth of 3 per cent . Over 60 per cent of the market is dominated by bars, while dish washpowders accounts for 32 per cent. Thepenetration levels are, however, still very low.

Cleaners / Repellents Market:

The cleaner market covering products like floorcleaners, air, phenyl and toilet cleaners, and isestimated to be growing at 20 per cent per annum.

The key players are HLL, Reckitt & Colman India(RCI), Henkel Spic, Bayer India and BalsaraHygiene. The market for insecticides and repellentsis estimated to be around Rs 8 bn has grown by 20per cent. Godrej Sara Lee is the world's largestmanufacturer of mosquito mats, with an all-Indiamarket share of about 66 per cent. The organizedsector is trying to increase penetration levels byhigher brand visibility.


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RECOMMENDATIONS

FOR FMCG MARKET

This research report outlines some measures for raising productivity, efficiency and

making FMCG competitive as follows: -

Levelof abatement forsoaps anddetergents should

be revised to 45per cent inconsideration ofhike in the prices

of variousinputs. Excise

duty of about 50


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The boom has also been fuelled by the reduction of excise duties, de reservation from thesmall-scale sector and the concerted efforts of personal care companies to tap the potentialsof the segment of the middle class through product and packaging innovations.

analysis and assessment of fmcg market of india

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